What is the main purpose of a SWOT analysis in business?

A SWOT analysis is a strategic planning tool primarily used to evaluate the internal and external factors that can impact a business's success. It stands for strengths, weaknesses, opportunities, and threats. The central purpose of this analysis is to provide a comprehensive overview of an organization’s capabilities and environment, which helps in decision-making and strategic planning.

By identifying strengths, businesses can leverage their advantages to exploit opportunities. On the flip side, recognizing weaknesses allows organizations to address and improve upon these areas, minimizing potential negative impacts. Additionally, identifying threats helps companies anticipate challenges in their external environment and develop strategies to mitigate risks. This holistic approach enables businesses to strategically position themselves in the marketplace and enhances their overall business acumen.

The other choices do not capture the essence of a SWOT analysis. While personal weaknesses are important for individual development, they're not the focus of a SWOT framework. Evaluating job applicants is a specific human resources function, which does not align with the broader strategic purpose of SWOT analysis. Similarly, forecasting sales figures pertains to financial planning and market research, rather than assessing an entire organizational landscape through the lens of strengths, weaknesses, opportunities, and threats.